Quote:
Originally Posted by BigFurry
Banks are not a tax authority, they're not checking if you're paying taxes. They only care about avoiding money laundering, money from illegal activities, and sometimes reputational risk.
In many EU countries small businesses and entrepreneurs can register to be exempt from VAT.
https://europa.eu/youreurope/busines...s/index_en.htm
As you can see, in the CZ the limit is around 39000 Euros.
Either way, it's not the banks job to check if you're paying VAT. You could pay it from a different bank, not just theirs. |
Correct, banks cant know how do you regulate VAT or not, they cant know anything, they can only "suspect" as you say but dont see point of suspecting since tax service have insight into account at any time. Perhaps they would suspect only in case if you registered as foreign account(since local tax service does not have insight into such accounts), but in my case i am registered as resident account so i doubt how i will ever be asked anything.
Also, regarding VAT - EU company need to charge VAT to other EU entity only if that entity is - person, or business person/company which is not in VAT system, however in CZ there is a thing called Light vat id, alias "identifikovana osoba", which i have and as result i do not need to pay VAT when dealing with EU companies, nor i need to charge it and i am still not registered as VAT on local level . This is made strictly for dealing with EU, so no need for it in case you are not doing bussiness with EU companies at all. So this allows to stay out of VAT but still not paying EU vat.
And speaking about VAT threshold, that info is partially correct - it applies only if you do 39000 EUR localy, if you do bussiness outside CZ only then limit is 4x time bigger.